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TPA: Our Two Cents is that the Postal Service Two-Cent Hike Is Unjustified and Unnecessary

David Williams on January 26, 2017

On Sunday, January 22nd, the U.S. Postal Service’s (USPS) price increase for First-Class mail stamps from 47 to 49 cents went into effect. This rate hike, imposed on the millions of consumers and users of the mail system, was regrettably approved by the Postal Regulatory Commission in December 2016 despite the comments submitted for review by the Taxpayers Protection Alliance (TPA) and numerous other organizations.

We are deeply concerned by the continued approval of unjustified rates on USPS’ core letter mail service given the high profitability of the products and the lack of restraint by the agency in advancing non-essential lines of business that lack financial justification.  The USPS continues to get involved in non-postal activities such as grocery delivery.

The rates coming into effect now are a clear reminder of how the path to fiscal solvency depends on USPS refocusing on its core mission to provide efficient mail service and to do so at a reasonable cost. The concerns are especially pertinent now as the PRC and Congress fulfill the all-encompassing review of the rate system. Without proper attention to potential system alterations, the USPS could be in position to have nearly unchecked authority on letter mail rate hikes. 

More information on USPS reform can be found at www.postalreformforus.org and TPA’s full comments about the rate increase can be found online.



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